Onto Innovation shares rise 5% after Q3 revenue climbs 88%

Onto Innovation (ONTO) beat the $2.35 consensus estimate for its third quarter, with adjusted earnings of $2.44 per share.

Shares rose 5.3% at 10:22 a.m. ET on Nov. 10, from a $194.04 close.

Here's how the company did:

• Revenue: $409.75 million vs. $218.2 million a year earlier, against $399.86 million expected
• Adjusted EPS: $2.44 vs. $0.92 a year earlier, against $2.35 expected
• GAAP diluted EPS: $0.95 vs. $0.57 a year earlier
• Non-GAAP gross margin: 57.6% vs. 54.0% a year earlier
• Operating income: $95.4 million, or 23.3% of revenue, vs. $23.7 million, or 10.9% of revenue, a year earlier

Revenue rose 88% from a year earlier and has risen in each of the last three quarters, to $343.1 million in the second quarter of 2026.

Backlog rose to more than $1.3 billion in the quarter. CEO Mike Plisinski said the backlog and customer visibility "gives us increased confidence in the durability of these demand trends."

Fourth-quarter outlook

For the fourth quarter, it expects revenue of $430 million to $450 million. It expects a GAAP operating margin of 24.4% to 24.8% and a non-GAAP operating margin of 33.5% to 34.5%.

It expects GAAP diluted EPS of $1.95 to $2.07 and non-GAAP diluted EPS of $2.59 to $2.79. It also expects to finish 2026 with revenue growth exceeding 45% year over year.

Cash and Rigaku stake

It closed its purchase of a 27% ownership interest in Rigaku in August and recorded a $40.8 million unrealized loss on that investment in the quarter.

About $79 million in cash came from operations in the quarter. It ended the quarter with $1.25 billion in cash, cash equivalents and marketable securities.